Draft Rule Reduces PAN Card Requirement for Property Transactions Below Rs 20 Lakh
The Income Tax Department has proposed an update to income tax rules reducing the PAN card requirement for property transactions worth less than Rs 20 lakh, offering significant relief for property buyers in small towns and low-cost markets. The revised rule also covers transactions like gifting and joint development deals.
Highlights
- •The proposed rule increases the PAN card requirement limit from Rs 10 lakh to Rs 20 lakh for property transactions.
- •Not providing a PAN card will no longer be mandatory for property transactions worth less than Rs 20 lakh.
- •The new proposal also includes provisions for gifting property and joint development agreements, which will benefit property buyers in small towns and low-cost markets.
The Income Tax Department has proposed a significant change to draft income tax rules, easing the burden for property buyers in small towns and low-cost markets. As of now, providing a PAN card was mandatory for property transaction worth more than Rs 10 lakh, but the new rule raises this limit to Rs 20 lakh.
While no longer mandatory for transactions worth less than Rs 20 lakh, providing a PAN card remains a need for transactions worth Rs 20 lakh or more. The new proposal also covers other transactions like property gifting and joint development deals. These changes are aimed at reducing paperwork and providing relief for property buyers, especially in small towns and low-cost markets.
Furthermore, the government's tightened PAN application process for companies will ensure that each transaction is transparent and avoid the issue of duplicate PANs.
These draft rules have cleared the path for property buyers to enjoy the relief and will be implemented only after a thorough review and consultation process with public and stakeholders.
